Back to the list

India’s Ministry of Finance recommends the government to ban Bitcoin in the country

02 August 2017 21:00, UTC

The recommendations regarding the prohibition and/or prevention of bitcoin use were presented to the Indian government by the group formed under the guidance of the Ministry of Finance. The Web portal Bitcoin.com delivers additional details.

The cryptocurrency research group to advise the government on the issue was created in April; its conclusions are based on surveys, consultations with all parties concerned and the cryptocurrency startups business history analysis.

The members of this group believe that the stop of cryptocurrency use is mandatory because people must be protected from all possible fraud schemes and all money laundering schemes must be prevented as well. In case if cryptocurrency circulation continues, the government must regulate the businesses and intermediaries which use cryptocurrency in their operations, while also preventing people from obtaining digital currency.

It should be noted that cryptocurrencies, Bitcoin especially, are popular in India. There is a considerably large Unocoin cryptocurrency exchange, and the people of India, although they don’t use bitcoins in daily lives and business very much, know the topic very well.

Although the government of India regulates Bitcoin, there is still some uncertainty remaining in this sphere. Apart from that group directed by the Ministry of Finance we have just mentioned, there is another cryptocurrency research task force and the Central Bank of India had been asked to look into the complaints regarding its inaction towards cryptocurrency. The Central Bank, however, chose to pass the bitcoin regulation authority to the Securities and Exchange Board of India.